Deliveroo proposes new charter for riders "without the risk" of affecting self-employment status
The call comes amid litigations on their workers' rights.
Deliveroo has proposed for a charter that aims to convince the government to have laws that will allow their 35,000 riders to receive benefits, without raising any concerns to their employment status.
The food delivery company says this new charter will have to focus on the work performed in order to not "damage" their contractors’ flexibility value, instead of having the benefits based on the hours and days worked.
Deliveroo cited the November 2017 case where the Independent Workers Union of Great Britain (IWGB) brought a case to the Central Arbitration Committee against Deliveroo about giving their workers’ rights and union recognition. But the company argued that they cannot have these benefits for they are “self-employed” because of the flexibility in their work schedule.
“Five years ago I completed the first order for Deliveroo. I still make deliveries to this day, so I know how important it is that riders are given the security they deserve. Ending the trade off between flexibility and security will help ensure the UK’s on-demand economy is fit for the future and benefits businesses, consumers and riders alike.” Deliveroo CEO and founder Will Shu said in a statement.
The call comes amid much discussion and litigation in Europe about whether Deliveroo's riders are self-employed or not.
Simplification of business rates also urged
As part of their partnership perks programme, Deliveroo and Gerald Eve also urged the government to simplify business rates.
Per their latest research, 41,000 restaurants paid business rates totalling to £744 million while £763 million are expected next year.
The results also reveal that around 19,000 of these found themselves paying higher bills larger than this year’s inflation. The rates of the increase ranges from 10.7% to 44.8%. If this continues until the following year, it’ll range from 12.5%-50%.
“Too many restaurants - from national chains to independent stores - tell us they are struggling with sky high business rates that are increasingly complex. Deliveroo already works with our restaurant partners to understand the support available but action is needed to protect this vital sector and the jobs it supports,” says Dan Warne, Deliveroo’s managing director for UK and Ireland.
The ones most affected by it are independent or small restaurants, covering 65%. Survey also shows that it have reached as one of the top three concerns that is hindered by the complexity of its appeals process, which takes 12 months for the Valuation Office Committee upon agreeing to look into it. A £500 fine will also be sentenced if the committee finds any inaccurate information.
Jerry Schurder, head of business rates at Gerald Eve, says that it only shows the “unfairness bakes into the system.”
“The complexity of the appeals process is just one area that is disproportionately hitting independent restaurants – who lack the expertise and resources to effectively navigate the system. We call on the Government to urgently review how it can make the rates burden more affordable, and adjust the system to make it fairer for all occupiers,” he continued.
